Allergy Therapeutics plc
("Allergy Therapeutics" or the "Group")
Trading Update and Successful Litigation Settlement
2019 full year earnings expected to be ahead of market expectations
27 June 2019 Allergy Therapeutics plc (AIM: AGY), the fully integrated commercial biotechnology company specialising in allergy vaccines, today announces a pre-close trading update for the 12 months ended 30 June 2019 and the successful outcome of the litigation related to the Grass MATA MPL Phase II trial. The Group will announce its post year-end trading update on 11 July 2019 and preliminary results on 25 September 2019.
Net sales this year are likely to be in line with market expectations showing good growth over the past year on a constant currency basis across most of Europe but especially in Spain, Netherlands and Switzerland. In terms of products, Venomil, Pollinex and Pollinex Quattro have all performed well and Acarovac Plus continues to be a top performing product in Spain.
As a result of lower than anticipated overheads through cost control and lower R&D costs (now expected to be less than £14m), due to the timing of the Grass MATA MPL Phase III trial, the Group now expects earnings for the full year 2019 to be ahead of market expectations.
As announced separately today, the Group has also received a $7.6m settlement from Inflamax Research Inc. ("Inflamax") in relation to legal proceedings about the previously disclosed inconclusive Phase II Grass MATA MPL trial which took place in the USA in 2015-16. Inflamax has also agreed to pay a substantial part of the Group's legal costs.
Commenting on announcement, Manuel Llobet, CEO of Allergy Therapeutics, said: "Allergy Therapeutics has continued to perform strongly this year, combining good sales performance with strong cost control, resulting in earnings ahead of market expectations for the full year. With the announcement today of a successful litigation result in relation to the Grass MATA MPL Phase II trial in challenge chambers, our cash position has been further boosted. We look forward to giving more detail on the Group's performance at our full year results in September."
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For further information, please contact:
+44 (0) 1903 845 820
Manuel Llobet, Chief Executive Officer
Nick Wykeman, Chief Financial Officer
+44 (0) 20 7886 2500
Freddy Crossley, Emma Earl, Corporate Finance
Erik Anderson, Corporate Broking
Consilium Strategic Communications
+44 20 3709 5700
Mary-Jane Elliott / David Daley / Nicholas Brown / Olivia Manser
Stern Investor Relations, Inc.
+1 212 362 1200
Notes for editors:
About Allergy Therapeutics
Allergy Therapeutics is an international commercial biotechnology company focussed on the treatment and diagnosis of allergic disorders, including aluminium free immunotherapy vaccines that have the potential to cure disease. The Group sells proprietary and third-party products from its subsidiaries in nine major European countries and via distribution agreements in an additional ten countries. Its broad pipeline of products in clinical development include vaccines for grass, tree and house dust mite, and peanut allergy vaccine in pre-clinical development. Other adjuvant systems to boost performance of vaccines outside allergy are also in development.
Formed in 1999 out of Smith Kline Beecham, Allergy Therapeutics is headquartered in Worthing, UK with more than 11,000m2 of state-of-the-art MHRA-approved manufacturing facilities and laboratories. The Group, which has achieved double digit compound annual growth since formation, employs c.500 employees and is listed on the London Stock Exchange (AIM:AGY). For more information, please see www.allergytherapeutics.com
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